Dogecoin Rockets Higher After Elon Musk Sets Good Boi As Twitter’s Logo: What’s Next For The Crypto?
Benzinga – Dogecoin (CRYPTO: DOGE) skyrocketed 32% at one point during Monday’s 24-hour trading session, launched higher by Elon Musk, who changed the Twitter icon from a bird to a doge image.
The crypto ran into immediate resistance just above the 10-cent mark and started to consolidate on smaller time frames following the boost higher.
From a technical analysis perspective, Dogecoin was surging higher on momentum after breaking up from a triangle pattern on Saturday, which Benzinga pointed out Friday could occur as the crypto worked toward the apex of the formation.
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The Dogecoin Chart: Dogecoin broke up from its triangle pattern on Saturday with increasing volume, which indicated the pattern was recognized. On Sunday and Monday, the crypto backtested the upper descending trendline of the triangle as support and bounced up from the area.
- The momentous move higher was also the continuation of an uptrend pattern in which Dogecoin began trading on March 10. The most recent higher low within that pattern was printed on March 27 at 7 cents and the most recent confirmed higher high was formed at the $0.075 mark on March 23.
- The move higher on Monday caused Dogecoin to blast up through the 200-day simple moving average (SMA), which suggests the crypto is now trading in a bull cycle. When Dogecoin retraces lower to print its next higher low, the crypto may backtest the 200-day to test it as support.
- Bulls want to see Dogecoin trade sideways to consolidate over the next few trading periods, possibly setting up a bullish inside bar pattern. Bears want to see big bearish volume come in and drop Dogecoin back down under the 200-day SMA, which could indicate Monday’s bullish price action was a bull trap.
- Dogecoin has resistance above at $0.099 and the 12-cent mark and support below at $0.091 and $0.083.
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